Consumer Utility
Consumer Utility: Overview
This topic covers concepts such as, Consumer Utility etc.
Important Questions on Consumer Utility
What is the measure of the satisfaction or pleasure derived from the consumption of goods and services?
What is the principle that states a consumer will allocate income so that the last unit of money spent on each good provides the same level of marginal utility?
Which concept explains the satisfaction a consumer gets from the consumption of a particular good or service?
Which utility concept ranks choices in order of preference rather than measuring them in absolute terms?
What is the term for the total satisfaction received from consuming a certain amount of goods or services?
Which economist is credited with the development of the concept of marginal utility?
Which law states that as more units of a good are consumed, the additional satisfaction from consuming each additional unit tends to decrease?
What is the name of the utility that is measured in monetary terms or units?
Which type of utility is associated with the consumption of successive units of a good?
What is the term for the satisfaction or pleasure derived from consuming a good or service?
Suppose there was a 4 % decrease in the price of a good, and as a result, the expenditure on the good increased by 2 %. What can you say about the elasticity of demand?
Suppose the price elasticity of demand for a good is –0.2. How will the expenditure on the good be affected if there is a 10 % increase in the price of the good?
Suppose the price elasticity of demand for a good is –0.2. If there is a 5 % increase in the price of the good, by what percentage will the demand for the good go down?
Consider the demand curve D(p) = 10 – 3p. What is the elasticity at price 5/3?
Consider the demand for a good. At price Rs 4, the demand for the good is 25 units. Suppose price of the good increases to Rs 5, and as a result, the demand for the good falls to 20 units. Calculate the price elasticity.
Explain price elasticity of demand.
What do you mean by complements? Give examples of two goods which are complements of each other.
What do you mean by substitutes? Give examples of two goods which are substitutes of each other.
What do you mean by an ‘inferior good’? Give some examples.
What do you mean by a normal good?
